The post Democrats Target Risky DeFi, Sparking Innovation Concerns appeared first on Coinpedia Fintech News

Several U.S. Democratic senators have introduced a proposal to tighten control over decentralized finance. The plan would allow the Treasury Department to label certain DeFi protocols as “high-risk” and add them to a restricted list, penalizing Americans earning income from them. It also proposes mandatory KYC checks on non-custodial wallet frontends and removes legal protections for crypto developers, signaling a tougher government stance on the DeFi sector.

The post Democrats Target Risky DeFi, Sparking Innovation Concerns appeared first on Coinpedia Fintech News

Several U.S. Democratic senators have introduced a proposal to tighten control over decentralized finance. The plan would allow the Treasury Department to label certain DeFi protocols as “high-risk” and add them to a restricted list, penalizing Americans earning income from them. It also proposes mandatory KYC checks on non-custodial wallet frontends and removes legal protections for crypto developers, signaling a tougher government stance on the DeFi sector.